G-III Apparel Group Closes Acquisition of Donna Karan International

NEW YORK--(BUSINESS WIRE)--
G-III Apparel Group, Ltd. (NASDAQ:GIII) announced today that it has
completed its acquisition of Donna Karan International, Inc., parent of
the Donna Karan and DKNY brands.

Morris Goldfarb, Chairman and Chief Executive Officer of G-III,
commented, "Donna Karan International is a transformative addition to
our global portfolio of iconic brands and enhances our position as a
fashion leader. We believe there is a need for these brands in the
market and that DKNY alone has the potential to generate $1 billion in
annual sales. Working closely with our partners and through our strong
licensing network, we are confident we can quickly bring to market a
comprehensive and compelling lifestyle offering that will restore the
DKI brands to prominence and excite consumers."

Mr. Goldfarb continued, "We have always sought to build our business in
a way that will provide us with long-term sustainable growth. DKI's
brands - DKNY, Donna Karan and DKNY Jeans - fit squarely with that
strategy and are now part of the powerful G-III portfolio that includes
Calvin Klein, Karl Lagerfeld and Tommy Hilfiger. Donna Karan is an
excellent growth catalyst for our company and we are well positioned to
continue to capitalize on the significant opportunities ahead."

Transaction Details

G-III funded the total purchase price of $650 million, subject to
certain adjustments, with a combination of (i) cash, (ii) $75 million of
newly issued shares of our common stock to LVMH and (iii) a $125 million
junior lien seller note, of which $75 million in principal amount has a
six and a half year maturity and $50 million in principal amount has a
seven year maturity. The cash portion of the purchase price was paid
from the proceeds of a $350 million six-year senior secured term loan,
and the balance from borrowings under a $650 million five-year senior
secured asset based revolving credit facility and cash on hand. The new
revolving credit facility refinanced and replaced the Company's existing
credit facility.

Statements concerning G-III's business outlook or future economic
performance, anticipated revenues, expenses or other financial items;
product introductions and plans and objectives related thereto; and
statements concerning assumptions made or expectations as to any future
events, conditions, performance or other matters are "forward-looking
statements" as that term is defined under the Federal Securities laws.
Forward-looking statements are subject to risks, uncertainties and
factors which include, but are not limited to, reliance on licensed
product, reliance on foreign manufacturers, risks of doing business
abroad, the current economic and credit environment, the nature of the
apparel industry, including changing customer demand and tastes,
customer concentration, seasonality, risks of operating a retail
business, customer acceptance of new products, the impact of competitive
products and pricing, dependence on existing management, possible
disruption from acquisitions and general economic conditions, as well as
other risks detailed in G-III's filings with the Securities and Exchange
Commission. G-III assumes no obligation to update the information in
this release.